More and More Americans Are Falling Back on Their Car Loan Payments
Car loans are a practical thing and many car owners resort to this option. If you don’t have that much cash on you at one moment or want to spread the cash you have, a loan is a solid option. If you’re a careful driver, there isn’t much differente. Yes, you’ll pay the rates to the bank or the leasing company, but people who opt for a loan can generally afford that.
While you’re able to pay your bills, it’s fine, but if you’re unable to pay, then you might be in trouble, and based on the most recent report, it seems that more and more Americans are actually falling behind with their payments.
If the data published by Fitch Ratings is correct, 6.56% of subprime borrowers are currently at least 60 days overdue on their loans since January, which is a record number since 1994, then the afency started collecting the data.
The same report also reveals that the number of overdue borrowers with payments 90 days or more late has increased to 3%, but these include those borrowers whose credit score is 640 or below. Despite that, the numbers are not looking good.
As for the reasons for this, rising costs of everyday life as well as high interest rates (which are increasing) are listed as the two main reason behind this increase in numbers, and looking at the general economic situation, these two parameters might not be improving soon.
The February numbers are still incoming, but we generally know that the numbers tend to rise in the first couple of months before going down in March and April, so we can expect an additional increase in the new report, but the situation will hopefully improve in spring.
Have something to add? Let us know in the comments below!
